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CRRFY or WMMVY: Which Is the Better Value Stock Right Now?

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Investors with an interest in Retail - Supermarkets stocks have likely encountered both Carrefour SA (CRRFY - Free Report) and Wal-Mart de Mexico SAB de CV (WMMVY - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Both Carrefour SA and Wal-Mart de Mexico SAB de CV have a Zacks Rank of #2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is only part of the picture for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

CRRFY currently has a forward P/E ratio of 9.87, while WMMVY has a forward P/E of 19.08. We also note that CRRFY has a PEG ratio of 1.80. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. WMMVY currently has a PEG ratio of 5.55.

Another notable valuation metric for CRRFY is its P/B ratio of 1.11. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, WMMVY has a P/B of 4.95.

These are just a few of the metrics contributing to CRRFY's Value grade of A and WMMVY's Value grade of C.

Both CRRFY and WMMVY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CRRFY is the superior value option right now.

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